Part I.

Reorganizes specified portions of GS 90-210.121 and recodifies portions of GS 90-210.136 under GS 90-210.121 (definitions for Article 13F of GS Chapter 90). Renames Article 13F as Cremations and Alkaline Hydrolysis.

Further amends GS 90-210.121 as follows. Adds and defines reduction as alkaline hydrolysis, cremation, and any other method of final disposition of human remains authorized by the board. Makes conforming changes to the definition of authorizing agent. Also adds and defines reduced human remains, and reduction containers. Makes additional clarifying and technical changes to the statute.

Repeals GS 90-210.122 (establishing the Crematory Authority), effective October 1, 2025. Requires members to serve out their terms until that date and makes members eligible for per diem and travel and subsistence expenses for expenses incurred up to that date. Requires the North Carolina Board of Funeral Services (Board) to ensure that any unpaid, eligible expenses are paid to members.

Amends GS 90-210.123 by requiring a crematory to have a crematory manager. Allows the manager to manage multiple crematories within a 50-mile radius of each other. Allows a crematory to operate for 30 days without a manager due to the manager’s cessation of employment if the specified criteria are met, inkling that the crematory licensee retains on or more technicians to perform cremations. No longer requires applications for license renewal to include the technician’s educational certificates, just requiring it for licensure applications. Allows a crematory in the process of replacing its only technical at the time of licensure renewal to continue operating for up to 30 days (was, 180 days). Requires a new application for a crematory license or permit if: (1) there is a change to the legal structure of the crematory resulting in change of majority of the licensee’s owners, partners, managers, members, operators, or officers; or (2) a crematory licensee’s owner, partner, manager, member, operator, or officer holding a majority of the crematory’s interest dies (allows their estate to apply for a permit within 180 days of the date of death).

Amends the circumstances under which a license may be suspended, revoked, or refused, to now include (1) conviction of or a plea of guilty or nolo contendere to a felony or misdemeanor indicating that the individual is unfit or incompetent to engage in cremations or that they have deceived or defrauded the public (was, conviction of a felony or a crime involving fraud or moral turpitude); (2) acts or omissions indicating that the licensee is unable to engage in cremations with reasonable skill and safety due to illness, excessive use of alcohol, drugs, chemicals, or any other type of substance, or by reason of any physical or mental abnormality (was, gross immorality, including being under the influence of alcohol or drugs while performing cremation services); and (3) adds violating or cooperating with others to violate provisions of Articles 13A (practice of funeral service), 13D (preneed funeral funds), or 13E (mutual burial associations). Also adds the following circumstances: (1) failure to refund any insurance proceeds received as consideration in excess of the funeral contract purchase price within 30 days of receipt; (2) failure to provide, within a reasonable time, either the goods and services contracted for or a refund for the price of goods and services paid for but not fulfilled; (3) violation of GS 58-58-97 (provision of life insurance information upon notification of insured's death); (4) failure to respond to the Board's inquiries in a reasonable manner or time regarding any matter affecting the individual's performance of cremations; (5) failure to adequately supervise or oversee auxiliary licensed or unlicensed staff, employees, agents, or contractors, as required by this Article and Article 13D, 13E, or 13F of this Chapter, any rules of the Board, or the standards set forth in Funeral Industry Practices, 16 C.F.R. § 453 (1984), as amended; and (6) knowingly failing to follow the lawful direction of a person with the right to authorize disposition of human remains in accordance with GS 130A-420.

Allows the Board to apply for injunctive relief in the superior county of (1) where an act is alleged to have taken place, (2) where the defendant resides, or (3) Wake County, if any person, firm, corporation, or other entity has committed an act allegedly violating any provision of this Article. Requires when a violation is found that the court issue an order enjoining and restraining the acts constituting violations. Entitles the Board to reimbursement of costs and attorneys' fees.

Repeals GS 90-210.124 (authorizing agent). Enacts new GS 90-210.124A requiring crematory licensees to comply with GS 130A-420 (authority to dispose of body or body parts) when acting under their respective scope of practice for disposition of reduced human remains or body parts.

Amends GS 90-210.125, concerning the information that must be included on the cremation authorization from to require: (1) a representation that the authorizing agent has the right to authorize the cremation of the decedent and that the authorizing agent is not aware of any living person who has a superior priority right to that of the authorizing agent, as set forth in GS 130A-420 (was, GS 90-210.124); and (2) that the authorizing agent may specify in writing religious practices that conflict with Articles 13A, 13D or 13F (was, Article 13).

Amends GS 90-210.126 requiring the witnessing of the cremation authorization form on a preneed basis be in accordance with GS 130A-420. Makes additional clarifying changes.

Amends GS 90-210.217 requiring providing a receipt upon the release of reduced human remains (was, release of cremated remains) and makes conforming changes. Requires a funeral establishment to keep business records of all forms it generates or that are provided to it, for three years. Requires keeping records of the disposal of reduced human remains (was, cremated remains) for three years.

Amends GS 90-210.128 prohibiting rules requiring that any cremated remains be placed in an urn or receptacle designed to permanently encase the reduced human remains (was, cremated remains) after the cremation process has been performed.

Amends GS 90-210.129, concerning the cremation procedure, to refer to reduced human remains instead of cremated remains. Adds the requirement that a crematory refrigerate human remains at a temperature no greater than 40 degrees unless cremation will begin within 24 hours of the time in which the crematory takes custody of the remains.

Amends GS 90-210.130, concerning the final disposition of remains, by referring to reduced human remains instead of cremated remains throughout. Requires that if the authorizing agent or their representative has not specified the final disposition or claimed the reduced remain within 30 days after the crematory licensee provides written notice delivered by certified mail to the authorizing agent’s last known address that the reduced human remains are available for retrieval, then the crematory licensee or person in possess of the reduced human remains may release those remains to another family member or dispose of the remains only in the manner allowed by the Article.

Amends GS 90-210.131 concerning liability, by referring to reduced human remains instead of cremated remains.

Amends GS 90-210.132 by changing the hydrolysis fees to reduction fees. Adds that by the 10th of the month, every crematory licensee and hydrolysis licensee must remit to the Board the per cremation or reduction fees for the cremations or reductions which the crematory licensee performed during the immediately preceding calendar month, along with a signed statement containing specified information.

Amends GS 90-210.136 requiring applications for a license to hydrolyze human remains to be on a form provided by the Board. Requires a license to comply with this Article, including GS 90-210.127 (record keeping) and GS 90-210.130 (final disposition of cremated remains).

Amends GS 130A-415 by making conforming changes.

Effective October 1, 2025.

Part II.

Adds transportation protection agreement (an agreement that primarily provides for the coordination and arranging of all professional services related to the preparation of human remains or cremated remains for the purpose of initial and subsequent transportation of those remains) to the list of defined terms in GS 90-210.60 (definitions concerning preneed funeral funds governed under Article 13D of GS Chapter 90). Excludes transportation protection agreements from the scope of Article 13D. Allows the Board to adopt rules to implement these provisions.

Further excludes transportation protection agreements from: (1) the definition of a preneed funeral contract under GS 90-210.60, (2) the business of life insurance under GS 58-7-15(1), (3) solicitations or sales for contracts used to fund transportation protection agreements under GS 58-58-330(a) (listing sales or solicitations exempt from regulation under Part 6 of Article 58 of GS Chapter 58, concerning dishonest and predatory sales to military personnel), (4) the definition of prearrangement under GS 58-60-35 (concerning disclosure of prearrangement insurance policy provisions).

Broadens the statutory provisions under GS Chapter 58 that apply to the insurance described in GS 58-7-15 (kinds of insurance authorized) to include every article in the chapter (currently, just Articles 1 through 64). Excludes a preneed licensee under Article 13D of GS Chapter 90 and fund transportation protection agreements from GS 58-58-1 (kinds of contract under the life insurance and viatical settlements article of GS Chapter 58).

Makes conforming change to GS 58-58-335, reflecting exclusion of fund transportation protection agreements from definition of business of life insurance under GS 58-7-15(1). Makes technical changes, including updating statutory references to reflect recodifications.

Applies to preneed funeral contracts and transportation protection agreements entered into on or after October 1, 2025.

Amends GS 58-58-97 allowing a licensed funeral director or an employee of a funeral establishment to request from a life insurance carrier, information regarding the contract for a prospective policy beneficiary when they are requesting the use of a life insurance policy for the fulfilment of funeral services; makes conforming changes. Requires the life insurance company to provide the specified information within one business day (was, as soon as possible). Adds that failure to meet this deadline may subject the insurer to penalty. Makes conforming changes to GS 58-39-75. Effective 30 days after becoming law and applies to inquiries made to life insurance carriers doing business in this State on or after that date.

Part III.

Allows the Board to adopt temporary rules to implement this act, which will remain in effect until replacement permanent rules are effective.